Capital Group Plunges Exposure by Two-Thirds as Global Funds Trim India Stakes Amid Sector Focus Shift

Capital Group Plunges Exposure by Two-Thirds as Global Funds Trim India Stakes Amid Sector Focus Shift​

Capital Group, the world's largest active fund manager with $3 trillion in assets, has significantly reduced its holdings in Indian equities over the past two years, according to data analyzed by Moneycontrol. This dramatic shift in portfolio strategy highlights a wider trend among major global investors.

As of March 2024, Capital Group held Indian shares worth ₹92,857 crore. This figure represents a substantial decrease compared to its holdings just two years prior. Furthermore, the fund's investment size shrank by 28% in FY26 alone, dropping from ₹41,056 crore.

The reduction in exposure has caused Capital Group to fall down the rankings of Foreign Portfolio Investors (FPI) in India. The company previously occupied the number one FPI position but now stands at the third spot, as detailed by Prime Database data.

Broader Trend: Top 20 FPIs See Net Selling Spree​

Capital Group’s actions are part of a broader trend observed across major offshore capital flows. The total value of assets held by India's top 20 FPIs has decreased by 12%. This drop accounts for a decline from ₹4.54 lakh crore in March 2024 to ₹4.04 lakh crore.

This development comes amid persistent selling pressure from offshore funds. Stock exchange data indicates that there have been net sales exceeding ₹4.6 lakh crore between April 2024 and the present date. This trend underscores a period of caution among several large global investors regarding the Indian market.

Norges Bank and Goldman Sachs Counter-Trend Amid Global Downturn​

While many leading FPIs are trimming their investments, Norges Bank stands out as an aggressive proponent of India's growth story. Norges is currently the largest FPI in India by a considerable margin. As of March 31, 2026, the fund managed assets worth ₹1.28 lakh crore.

This portfolio size is nearly three times that of Goldman Sachs, which holds the position of the second-largest FPI. Goldman Sachs manages ₹45,534 crore in India investments. Since 2024, Norges Bank has seen its total managed assets rise by 35%. The fund’s investment in India portfolio nearly doubled since FY23.

Analyzing the Ranking of Key Foreign Investors​

Goldman Sachs, a US-based firm, has grown significantly in the Indian market space. As of FY22, the company managed only ₹4,665 crore in assets. These investments have since multiplied by 10.

Nalanda Fund ranks as the fourth largest FPI with assets worth ₹26,504 crore. Nalanda is one of India's oldest registered foreign funds. However, its investment portfolio value has been incrementally declining year over year, having fallen by nearly 30% since FY24.

Government and Specialised Funds Maintain Positions​

The Government of Singapore holds the fifth largest FPI position with a portfolio worth ₹25,427 crore in India. It is crucial to note that this figure represents only part of the Singapore government’s commitment to India. A large portion of their total investments has been channeled through Foreign Direct Investment (FDI) into unlisted companies and major capital projects.

GQG Partners secured the sixth FPI position, having first gained prominence in 2023 after significant investments into the Adani Group. The fund’s portfolio peaked at ₹37,582 crore in FY25 before declining due to sales of some Adani portfolio assets. Northern TK Ventures and Amansa Holdings are also listed among top FPIs, each managing over ₹13,000 crore in India.